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President of the Few Exaggerates Impact of Sequestration

Now I know that for many folk, the sequestration is either serious or not. Although I do accept the ramifications of the process, it is hard to get real involved in make believe political nuance. But as such, It is equally as hard not to weigh in on the inside the beltway kabuki theater we surmise as Washington politics. First, what get me is the big deal folk make out of this entire thing per an economic issue. If anything it is an issue of national security first and foremost (42 percent of cuts will come from defense). But I suspect this is what President Obama anticipated when he first proposed sequestration for whatever reason in 2011 (which in itself is another essay). I say this because I think he really believed that Congress would bow down to protect their cash cow “defense spending.” But they have since then taken his player card.

Truth be told from a federal agency perspective, it only $85 Billion (north of $40 billion this year), that they have to cut. I think what is missed mostly in all of this is that our issue really isn’t related to debt or the deficit, but rather credit and borrowing. Yes we spend too much no question, but ours is a credit problem – we borrow too much which makes economics ignore what is essential – that one can address the debt and deficit and encourage economic growth by leasing in on cutting wasted and duplicated spending.

Again it is just $85 billion. AIG got two times as much when the government bailed them out, yet we can find money to bailout Wall Street but not cut from what we already spend? I find that hard to believe because the average individual, family and small business owner, if had to, could cut less than three cents from each dollar earned without going bankrupt or homeless. I know less than 3 percent is possible from history alone. If FDR could cut the federal budget by almost 40 percent at the start of WW II in one year, surely we can locate 3 pennies of each government dollar currently spent.

Maybe this is why the theater. Three cents on the dollar won’t hurt if done correctly (end waste and duplication.) But if it hurt anybody it will be us, the poor folks in America who depend on services like head start and similar provisions. President Obama knew he was taking a risk, but instead of the wealthy he pretends he wants to tax, he put folk on the hook who live pay check to pay check, struggling to survive in poverty and who depend on head start on the hook as bait for house republicans. And they didn’t take it because they only grab on behalf of rich lobbyist (as well as democrats). Now we are back to Washington at its best, seeing that pointing fingers is more important to the administration and the congress than moving pencils and using erasers. The result is all outside in real America being stuck in the weeds on this matter.

In four days we will have Armageddon as the president describes it. Although all parties agreed to it, why is it Armageddon now and it wasn’t then? America outside the beltway isn’t growing fast like Washington, DC and Wall Street. Since looking at what has happened from 2009 to 2011, more than twenty major corporations have paid no income taxes. Including the likes of General Electric, Boeing, Verizon and Amazon [Amazon made billions in sales in 2011, while paying nothing in corporate taxes]. The reality is that since Obama has taken office, corporate taxes in the U.S., at an all-time low in which we see the most profitable companies paying nothing at all. Yet instead of fighting for the payroll holiday to continue President Obama did not fight for it, for these people were on the hook as bait. In 2011, Facebook made billions and paid not taxes yet was given a rebate of more than $400 million dollars the same year.

The fact is all of the above demonstrates that both the present administration and the members on the hill have only corporate interest at hand. Not only is it government for the few, it is also President of the few. Drake almost got it right, but I would say “we started from the bottom and we still here.”

Gimme $785 Billion Jones

Point of order: Good look to Wild Gypsy – I got the check, I am so flattered and appreciate it greatly. Again thank you for your kindness.

Now today will keep it brief. For some reason or another I think that that 785 billion they just gave the president will be thrown around to fat cats like the first lump sum of said billions asked for by the former President. On the real, I’m been thinking that Obama has that check in his desk drawer and pulls it out every 15 minutes, thinking and saying to himself “dang, $785 billion dollar” and wondering if he should just leave the country. Or that he has already taken Air force One around the country to every check cashing place in the country to cash that joint. Albeit I know he won’t.

But with that said, and the fact he, as the former President has spelled out no plan to use the loot, this is what I would do to stimulate the economy. Yep stimulate, because I have yet to read any form of stimulus, for all I see is spending and just because one spends doesn’t necessarily translate in a stimulus – for spending and stimulus are not the same.

Any who, here is what I would do, from the bottom up, to help stimulate the economy and be reminded, I have only had one class in economics and that was during one semester of my 10^th grade of high school. In no particular order:

1] If I did give it to banks, would mandate and stipulate (maybe even sign an executive order) telling banks to refinance all mortgages at the current value of the homes. Banks will get loot and expect folks to pay 300k mortgages on houses with market values of 150k, meaning they get bailout money and the extra loot from a 300K mortgage when the home is not worth such – foul.

2] Offer all small businesses having annual earnings of less than 250k, stimulus checks between 25 and 40,000 dollars. His would encourage spending for inventory and materials as well as research and development.

3] Freeze the requirements of social security and taxes on all business, even pay roll taxes. No explanation necessary.

4] Repeal the marijuana tax act of 1937. This is America’s largest cash crop.

5] Require banks that receive TARP funding or any federal monies to use the loot to pay 35% of the mortgage values of homes in or entering foreclosure. This figure would be 45% for those individuals suffering hardship due to recent unemployment.

6] Obviate and repeal the Commodities Futures Modernization Act of 2000.

7] Increase funding in research for NIH and institutions of higher learning.

8] Likewise, provide across the board $5,000 increases in the salaries of teachers working in public sector pre-k through 12^th grade.

9] Standardize the credit card industry so they cannot willy-nilly raise, create and change rates at the drop of a hat.

10] Purchase outstanding debt, or mandate that the debt in toxic assets and complex papers be translated or transferred into student loan debt and out right purchased for consumers who have such debt.

I mailed these off to the new administration last week. So what do you suggest?

Addendum: Wonder if Obama smokes Newport’s or Kool Filter Kings, and if he does, what would Aaron McGruder say about his blackness then – LMAO.

No strings attached.

Just want to say for the record, yea, I tend to harp on shit, in particular if it is what is on my mind. Butterah you know, such is just the way things are with me. Found out today against my dismay, that folk up on Capitol Hill finna give away some more of my loot. I was against it with Wall Street and I still maintain the same position respect to the automobile industry.

I still don’t get what the bailout will accomplish, but I won’t get into that. Let alone the massive number of Insurance companies purchasing Bank holding companies so they can get some of the loot too. I believe that one cannot rescue a person or institution that wont rescue they self. And a stock market that hit 89k mark over the past few days don’t mean jack to me for there is still no liquidity in the market, world borrowing is down nearly 80% and money still being withdrawn from Hedge fund accounts (1.5 trillion in Hedge funds world wide), tells me that these aint the average folks investing or making calls on stocks. Not to mention yesterday, from a few newspapers alone, I counted more than 12 thousand jobs lost (in one day). Just in Jan. this year the DOW was at 13k, and im posed to be happy with 8.9k?

So today, something new, instead of Alexander Onealing (critisizing), I am gonna offer a few suggestions that I would put in place if I was like a senator, a president or an economist. The first I know can’t occur, but may be used in the future when folks wanna give loot away all willy nilly.

• If you give ANY loot out, don’t ask folks to bring you a plan, you give them your plan with a "take it or leave it” caveat.
• For the Banks and wall street: Mandate they use the money to erase the balance of all outstanding student loans. This would be one way to foster consumer spending.
• As opposed to buying toxic assets and injecting capital, for banks, next time you may consider really attempting to stop home foreclosure rates by buying 35% of are the mortgages in America. You don’t have to purchase the entire mortgage for that will only assist 4 to 5 million of the 50 million across the country. This would make payments manageable, improve equity in said homes. And please just don’t use Fannie Mae and Freddie Mac; make them for all home lenders. All one would need is a standard agreement (as the Treasury made with Banks) for people to apply. This would be the best foreclosure mitigation approach from my view.
• Never let the Treasury department be in charge of stimulus or bail out programs because they don’t attach any strings. The Treasury “expects”, not know or has mandated, for banks to start lending and making credit available when in fact they did not state the manner in which funds received will be used. They say they “want” to work with congressional oversight committees and the Comptroller, but didn’t write it in so it is not a prerequisite for getting any of that massive sums of loot.
• Instead of giving money, buy shares in exchange for my loot so these banks can own up to their share of the debt in actual cost.
• If you are doing an infrastructure development/stimulus plan, don’t just focus on Urban areas. Be even handed with rural areas as well. It don’t sit right with me when I give money for Urban development and the bus stops at the end of the city boundary.
• Try and structure economic preparedness in our budgetary policy like they do in India, where the work from the construct of deficit confinement. As such all the do from growth to stimulus to tax efforts are designed to manage deficit growth to 2.5% or less.
• Study some these other stimulus packages being placed on the table around the world. I know China is putting one out worth $581 billion US/ And say study, not copy, because from what I can tell about the Chinese effort – it is lacking and don’t focus on human capital development – a no-no to me. So be sure to invest in human capital, this will increase social spending. One way would be to give 40 to 50 thousand dollar grants to people desiring to attend college for the next 4 to 5 years. Again this is an investment and not a give away. And I would be remised if I did not say jack up the investment in scientific research at the university level as well.

Now these are just a few ways I think we may see this economy swing around, it’s not about top down or trickle down - it is about bottom up. So Mr. Obama, I know your hands are tied, but you got to stop being so politically correct and think outside the box. Don’t be asking for no plans, or waiting for GM to give you no plans, make your own plan folks and tell them fools to break themselves or go home empty handed. Don’t be a pasty and stop shelling out our loot with no strings attached. Five to one the Big three gone roll through this loot and be out of business still before next Spring.

i dont give a Smoot

You know some folks say im hard on Obama, and others say or ask why I don’t like Jones or give him a chance. I do like jones and I am giving Jones a chance it is just that read and listen to what he says and instead of excepting like a coward or slave, I study his words and approaches to problem solving. This is because my penchant is for him to succeed.

I listened to his radio address this past weekend and was glad to hear that he was changing his tune and even suggesting some things I had suggest a few months ago in this blog when I first heard his economic plan. Namely that he desires to revive the economy through a job-creating public works plan (hopefully on a state by state level). In addition, his prowess showed because I aint her the word “spend” not once, instead it was replaced with the word “invest”. However, he aint mention no cost estimate for his plan or talk about how it will be disseminated, and even more importantly, what structural changes would be implement (laws abrogated) or international issues that needed to be addressed to get the economy rolling. This is important because common folks seem to be more detailed regarding the economic crisis we face than politicians – inclusive of him.

As such I am scared that he may consider a Smoot-Hawley Tariff Act (men in pic) approach to help with this problem – which I don’t think is a smart thing to do. In June 1930 this act was designed to increase the protection afforded domestic farmers against foreign agricultural imports. Now I know it is far fetched, but he has stated on the record that he would “strengthen the productivity of our workers and businesses; by enforcing our existing trade agreements and negotiating better trade agreements.” I also know that he has not said anything about issues related to free trade, especially since the deficit reflects the amount of foreign investment to the U.S. economy; which for the record without, we would have a whole bunch more foreclosures and business closing their doors.

And back then, although it was no bail out, it reminds me of the bail out since it was enacted to protect a certain economic sector – farmers. The bail out has similarly targeted banks, now auto industry and maybe next, states and credit card companies. For after the Smoot-Hawley Tariff Act was put in place, like now with the bailout, folks asking for increased protection came in from all the other industrial sector special interest groups,

Now I’m gonna keep an open mind, and recant, In not hating but rather thinking and want to know what Jones got in mind regarding free trade because legislation like the Smoot-Hawley did not make the depression any better for it was enacted after prior legislation to deal with the economic problem like the Fordney-McCumber tariff. All I am saying is that I don’t give a Smoot, but that enquiring minds would like to know.